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May 30, 2007


Bob, read your reply on Crush the Turtle, amazing.

I read a rather critical article of the new Microsoft Surface, from one of my investing subscription services (realmoney.com), thought you would enjoy it.

"Oh my, Microsoft (MSFT) has really lost it this time. Now it has a flat touch-screen computer you can put on a table that allows you to order from restaurants and forward rewards points to casinos.

How was I able to live without this device? How have I managed to exist? And I only have to pay $5,000 to $10,000 for it?
They are practically giving away this unique device. I guess I better start queuing up to get one.

Can someone tell me how Microsoft came up with this unneeded device, even as a device I don't want to live without -- an iPhone -- beckons?
Even the possibility that I might have to switch to what I regard as an inferior wireless carrier to get the iPhone doesn't deter me.
But a flat-screen computer embedded in a desk? Well, I'll be. Does it connect wirelessly, remotely, with my Zune? Can I use it to play with my Nintendo Wii?

People wonder why Microsoft's stock has essentially done nothing for years and years, despite special dividends and buybacks and regular dividends.
I have the answer: devices like these, which tell me that Microsoft has too much money and not enough insight into the American consumer -- although the Xbox does give Wii somewhat of a run for its money.

Devices like these and the buy of aQuantive (AQNT) for $6 billion rather than a buy of Yahoo! (YHOO) for $35 billion (about all that company would have cost a half a year ago) or for a pittance just six years ago after the viscous Nazz selloff.

So watch Microsoft's stock creep ever higher -- 30 cents up, 29 cents back. Or look at Apple (AAPL), which is up huge in the time that Microsoft's been stagnant because it actually is innovative and makes products that people want!

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